Paras Defence Q4 profit jumps 74%; stock extends decline, still up 13% in a month: Target prices, outlook

Paras Defence and Space Technologies Ltd on Wednesday reported a 74.34 per cent year-on-year (YoY) rise in consolidated net profit for the March quarter (Q4 FY26).

Profit attributable to owners of the company came in at Rs 34.38 crore during the quarter under review, compared with Rs 19.72 crore in the corresponding period last year.

Revenue from operations climbed 58.28 per cent to Rs 171.31 crore in Q4 FY26 from Rs 108.23 crore a year ago.

Alongside the quarterly results, the company's board recommended a final dividend of Re 1 per equity share of face value Rs 5 each for the financial year ended March 31, 2026.

"The date of the Annual General Meeting (AGM) for FY 2025-26, the record date for the purpose of the final dividend and the date from which dividend, if approved by shareholders, will be paid, shall be communicated in due course," the company said.

Stock performance

Despite the earnings growth, Paras Defence shares extended losses for the fourth consecutive session today. The stock fell 0.75 per cent to settle at Rs 794.80. Even after the recent decline, the counter is still up 12.54 per cent over the past one month.

Kranthi Bathini, Equity Strategist at WealthMills Securities, said defence stocks have witnessed a strong rally in recent weeks and Paras Defence has also rebounded sharply from its lows.

"Valuations look stretched from a medium- to short-term perspective. Existing investors can continue to hold, while fresh buying may be considered on dips with a long-term view," Bathini stated.

Virat Jagad, Senior Technical Research Analyst at Bonanza, said the stock is trading near a key resistance zone of Rs 820-830 after a sharp recovery from lower levels.

"The stock has managed to hold above its breakout support near Rs 780, indicating sustained buying interest. Momentum remains positive with RSI holding above the midline, though some consolidation near resistance cannot be ruled out," he said.

Jagad added that a decisive breakout above Rs 830 could push the stock towards Rs 870-900, while immediate support is seen near Rs 780.

Meanwhile, AR Ramachandran, Sebi-registered research analyst at Tips2trades, said the stock remains bearish on daily charts with strong resistance at Rs 888. "It may slip towards Rs 715 level in the near term," he added.